As lenders jostle to expand their share of the home loan market, all big four banks are now trying to lure new customers with types of cash rebates, and one non-bank lender is even offering fuel vouchers.

While banks say the trend underlines the fierce competition in the sector, it comes as some in the industry argue lenders should be doing more to pass on savings to their existing customers, not just those who shop around.

Among the major banks, NAB's UBank is offering new customers $2,014; the Commonwealth Bank has a $1,000 rebate for first home buyers; Westpac-owned St George, Bank of Melbourne and BankSA are all offering $1,250 to new customers; and ANZ is offering up to $1,000 to cover the costs of customers who switch banks.

Non-bank lender Better Choice is seeking to tap into concerns about fuel prices by offering new customers discounts of between 10c and $1 a litre on petrol, depending on how much they borrow.

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Several of the offers have been launched in the opening months of 2014, as banks scramble to win new customers in an environment of very cheap credit.

Mortgage Choice chief executive Michael Russel, who has worked in mortgage broking for 13 years, said banks made these offers from time to time but he had never seen so many cash inducements being offered.

''I cannot recall this many banks offering this many cash rebates at the same time,'' Mr Russel said.

Kirsty Lamont, of interest rate comparison website Mozo, said the number of banks offering cash inducements had surged compared with spring last year, after the last cut in official interest rates in August.

''There's been a huge spike in the number of lenders offering cash back sweeteners to borrowers, especially refinancers,'' she said. ''With interest rates so low, banks are having to find other levers to pull.''

All of the offers have specific conditions, such as as minimum borrowing amounts or deposits.

With interest rates so low, banks are having to find other levers to pull

With the Reserve Bank this week predicting a ''period of stability in interest rates,'' Mr Russel said he would not be surprised if more lenders start to promote cash-backs as way to appeal to borrowers.

However, the trend comes amid a debate about the banking industry's heavy focus on on winning new business via discounting or perks such as cash backs, rather than passing on savings to their existing customers.

The chief executive of RBS and former senior CBA executive, Ross McEwan, last month said the British bank would no longer offer the most attractive prices to new customers.

''We will reward our customers for loyalty and stop giving the best deals only to those who switch banks or apply online,'' he wrote in the Guardian.